Inflation Explained with Bananas

[0:00]If monkeys have one banana, banana rare, banana valuable. But if monkeys grow more bananas, banana become common. Banana not as valuable. Demand pull inflation. If monkeys demand more banana, but banana farmer makes same amount, banana price go up. Because banana more rare. Cost push inflation. If banana demand is the same, but banana farmer have less banana to sell, banana price go up because banana become more rare. Production cost inflation. Monkey buys banana. Monkey eats banana. Life is good. Monkey tell monkey friends about banana store. Monkeys buy all the bananas. Banana farmer has to plant more banana tree. But banana seed become more expensive. So, banana farmer raised price of banana to cover costs. Monetary inflation. If banana demand is the same, and banana supply is the same, but monkeys have more leaves than usual to buy banana, banana price go up. Because now leaves are not worth as much as before. Hyperinflation. Price of banana goes up, so monkey government decides to create more leaves so monkeys can afford banana. So monkeys buy more banana, but banana price goes up to keep up with banana demand. So monkey government creates more leaves, but price of banana goes up to keep up with more demand. So monkey government creates more leaves, but price of banana goes up. So monkey government creates more leaves. This is getting ridiculous. Eventually, monkey government burns all the leaves and starts making sticks, its new currency. Inflation is not necessarily bad for monkey. If monkey's amount of leaves goes up at the same rate as price of banana, monkey happy. If monkey's leaves goes up, but banana price stays the same, monkey rich as fuck. If monkey's leaves stay the same, but banana price goes up, monkey poor, monkey sad. Monkey is all of us. To avoid inflation, monkey should invest banana, as this will grow more banana with time. Sometimes inflation can get really bananas. Please subscribe.